@Robert Quiroz I think all of the factors you have listed might contribute.So I’m not going to comment on that but I am going to comment on an assumption you made.If 85% of rents are below market on deals you underwrite then those contract rents are probably THE market rent.You can’t just go based upon area median income to rent ratio.First off urban areas are oftentimes street by street, block by block.

Just north of town 10 blocks they built about 100 mini houses about 300 square feet.  

I like the idea of STR as it seems like it can generate significantly more income than LTR and would allow me to block out dates if I have friends or family come visit.

I managed a low end apartment block for several years. 

I removed the chimney and added modern HVAC, making it the only house on the block with it, significantly enhancing its value.

I removed the chimney and added modern HVAC, making it the only house on the block with it, significantly enhancing its value.

Philly is a nice option, but you have to study the blocks for about a year to be sure you understand the area you are investing in.

You can see he even went so far as to pretend it’s real by using a real enough image of check that they would “need” to block out the account and routing numbers….

Not sure how they could block a sale but I imagine they told him the central heating unit for the whole complex would soon need replacement so a special assessment would be upcoming.  

Infeasible.To build out of concrete block.